At Aspire Money, we understand there are many confusing financial terms out there. Here's an easy-to-use glossary to help you understand everything clearly.
A credit rating that shows a history of missed payments, including defaults and CCJs.
Information you submit to be considered for a loan.
Annual Percentage Rate — the standard way to compare borrowing costs.
Unpaid or late payments on credit agreements that can affect your credit rating.
Another term for adverse or impaired credit.
A legal process for people unable to repay debts, severely affecting future credit.
The interest rate set by the Bank of England for lending to banks.
A court order registered when someone fails to repay money they owe.
The time after a purchase when you can cancel the agreement.
Taking one loan to repay multiple debts.
Your past record of borrowing and repaying money.
A lender or finance company that provides loans or credit agreements.
A legal contract outlining loan terms, repayment, and costs.
A lender’s review of your financial history and creditworthiness.
A summary score based on your credit report.
Money or property used to secure a loan.
A company that finds loan options from multiple lenders.
Money owed to a lender or financial institution.
Taking one loan to repay multiple existing debts.
A repayment plan created to manage unsecured debts.
Failure to repay credit as agreed, affecting your credit record.
The Financial Conduct Authority — regulates financial firms in the UK.
Costs associated with financial services or products.
A loan interest rate that remains unchanged for the full term.
Total income before tax deductions.
A loan requiring someone to guarantee repayments on your behalf.
Someone who owns their property outright or with a mortgage.
Independent Financial Advisor — provides professional financial advice.
A formal alternative to bankruptcy, supervised by a practitioner.
A person who owns a lease on a property, but not the freehold.
A company that provides unsecured or secured loans.
Money borrowed from a lender, to be repaid over time.
Your submitted details for a loan assessment.
The reason you want to borrow money.
Missed payments on accounts, typically within the last 12 months.
Insurance that covers repayments if you can't repay due to illness or job loss.
Fees for repaying a loan earlier than agreed.
Monthly amounts paid to the lender to reduce your loan.
Allows you to confirm your income without providing full accounts.
The amount required to repay a loan in full before the term ends.
Someone who rents a home rather than owning it.
The length of time over which you repay your loan.
The total amount you repay including interest and fees.
How lenders assess your ability to repay a loan.
A loan that is not secured against property or assets.
An interest rate that changes over the lifetime of a loan.